LOS ANGELES--()--FPA International Value Fund [FPIVX] celebrated its 1st anniversary on December 1, 2012, with a one-year return of 21.00%. The Fund ranked #1 of all 391 funds in Morningstar's Foreign Large Value fund category for the 1-year period ended 12/3/2012. Over the period, the Fund's cash stake has fluctuated along with the opportunity set from around 20% to close to 45% of assets and has averaged about 30%.
“The International Team has been a great addition to FPA”
"The International Team has been a great addition to FPA," said Rich Atwood, Chief Operating Officer and one of FPA's Managing Partners. "All of the partners are pleased that the FPA International Value Fund has reached this first milestone with solid results, and as large investors in the Fund, we have demonstrated our commitment to the strategy. We are excited about its prospects for the years ahead."
Led by Pierre O. Py, the FPA International Value Fund looks to provide above-average capital appreciation over the long run while attempting to minimize the risk of permanent capital losses. The strategy employs an investment philosophy that is consistent across FPA's strategies: a focus on absolute value, bottom-up analysis, and seeking downside protection. Taking a long-term, often contrarian view, the strategy focuses on purchasing high-quality businesses that are well-run, financially robust and trade at a minimum discount to estimated intrinsic value of 33%.
"I am grateful for the support FPA has provided and trust investors have placed in the Fund," said Py. "The Fund's performance thus far, while positive, should not be given too much weight. The volatility of international markets over the last year afforded us opportunities to deploy some of our capital and generate strong returns in an up-market. This may not always be the case. At times, we expect to experience poor relative short-term performance. Regardless of market conditions, we will hold true to our discipline of investing in high-quality companies which we believe incorporate a high margin of safety. In the long run, we are confident this will prove to be a rewarding approach."
FPA is a leading practitioner of value investing. Providing a prudent place to invest, the firm focuses on generating superior returns over the long-term, coupled with capital preservation. FPA fosters a culture that promotes high ethical standards.
Located in Los Angeles, California, FPA is independently owned, with 25 investment professionals and 65 employees in total. Currently, FPA manages $21 billion across four equity strategies and one fixed income strategy.
FPA's equity and fixed income styles are linked by a common fundamental value orientation. Our goal is to provide a consistent, risk-averse and disciplined approach to long-term investing in individual securities with the objective of achieving superior total returns for client portfolios.
Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. The prospectus and summary prospectus contain this and other information about the fund, and may be obtained by contacting your financial advisor, visiting our website at fpafunds.com or calling us 800.638.3060. Please read the prospectus carefully before investing. Investments are not FDIC insured or bank guaranteed, and may lose value.
FPA International Value Fund: The Morningstar percentile ranking for the FPA International Value Fund was derived using the total return associated with its 1-year period as of 12/3/2012. The Fund's Morningstar percentile ranking was 1% for the 1-year (1/391) period when compared against the Morningstar Foreign Large Value Category.
As of the last quarter ended September 30, 2012, the Fund's total return for the quarter was 7.01% compared to 7.40% for MSCI ACWI ex US. Since the Fund's inception on December 1, 2011, the total return through September 30, 2012 was 16.00% versus 9.14% for MSCI ACWI ex US.
The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the Fund's short-term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance data through the most recent month end is available at fpafunds.com or by calling 800.638.3060.
A redemption fee of 2% will be imposed on redemptions within 90 days of purchase. Gross expense ratio: 16.64%. FPA has contractually agreed to waive certain fees/expenses through April 30, 2013 to ensure that the Total Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement will not exceed 1.35%.
There are risks associated with investing in funds that invest in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. The portfolio is actively managed and holdings can change at any time. Current and future portfolio holdings are subject to risk.
These materials are provided for informational purpose only. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Any statistics contained herein have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed. The views expressed herein may change at any time subsequent to the date of issue hereof. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.
The MSCI ACWI ex-USA Index is a float-adjusted market capitalization index that is designed to measure the combined equity market performance of developed and emerging market countries excluding the United States.
The performance returns for the FPA International Value Fund reflect fee waivers and expense reimbursements in effect. In absence of such waivers/reimbursements, the returns and percentile rankings would be reduced.
The FPA Funds are distributed by UMB Distribution Services, LLC. 803 W. Michigan Street, Milwaukee, WI 53233.